Sustainability and ethical corporate culture can increase the value of brands, study reveals

To increase the value perceived by the customer, brands must associate sustainable innovation in products and services with an ethical and responsible business culture. Users associate values such as the organization's receptivity to new ideas and privacy in the management of personal data with a commitment to social responsibility. This increases the positive response to environmental innovations of brands – which, in turn, do not achieve such an effect in isolation. Thus, companies must prioritize practices aligned with the demand for privacy and transparency in data to enrich the brand value perceived by consumers.

The reflection is in an article published by FGV EAESP researcher Marcelo Gattermann Perin, in collaboration with other authors, in the journal "Sustainability". The scientists investigated the role of consumer perceptions of environmental innovation and ethical aspects in the value of brands. To do this, they conducted an online questionnaire with 336 graduate students who consume products and services from the Apple and Microsoft organizations, companies with high added value.

As environmental innovation of products, the authors understand the care in minimizing possible environmental damage in the innovative process, avoiding the use of toxic materials and prioritizing the efficient use of raw materials, for example. On the other hand, the perceived value of the brand refers to the subjective opinion of each customer in relation to the brand's offers and deliveries, which affects their purchase decision.

According to the study, consumers prefer companies that are concerned with protecting personal data and that receive ideas regarding values and management aspects. Practices such as the adoption of suggestions and the solution of problems indicated by users generate greater confidence in the reputation and image of organizations. Among other attitudes that consumers prioritize are the storage of adequate levels of personal information, the use consistent with what is authorized by the user and the preservation of the sale of data to other companies. The development of ethical perspectives that allow balancing the interests of the company and consumers allows for a more effective achievement of the objectives and goals of the corporation, the authors emphasize.

As practical applications, the researchers suggest that managers adopt sustainable actions, associated with marketing campaigns, to demonstrate to the public that the company is open to listening. It is also important to incorporate consumer demands and feedback, as well as to be more ethical in relation to data, with the development and incorporation of information privacy policies based on fairness, transparency, and responsibility. In addition, government representatives can offer incentives to companies that adopt such practices. Thus, companies can capture consumer trust and effectively provide a competitive advantage.

To read the full study, visit the website.